Which of the following is not a source of systematic risk?
A) The business cycle
B) Interest rates
C) Personnel changes
D) The inflation rate
E) Exchange rates

Question

Quizplus · Accepted Answer

Systematic risk refers to the overall risk that affects the entire market or a segment of the market. It is not specific to a particular company or industry. Factors such as the business cycle, interest rates, the inflation rate, and exchange rates are external and affect the entire market. In contrast, personnel changes are specific to a company and represent unsystematic risk, which can be diversified away.

Which of the Following Is Not a Source of Systematic